Although the Indian stock market opened with gains on Tuesday, major indices fell sharply by the end of the day. The market came under selling pressure as the initial momentum could not be sustained.
Big fluctuations were seen in the Indian stock market during the trading session. According to stock market updates, after gaining gains in early trade, major indices ended the day with a sharp decline. Sensex fell by more than 778 points to close at 74,003.82, while Nifty closed at 23,118.60, below the crucial level of 23,150. Due to the sharp fall, the wealth of stock market investors has decreased by about Rs 7 lakh crore.
Selling pressure in several key sectors
The selling pressure in the market was not limited to a limited number of stocks, but weakness was seen in many major sectors as well. Rising bond yields, higher crude oil prices, uncertainty over global interest rates and geopolitical tensions weighed on investor sentiment.
Market decline after initial surge
Although Indian markets opened on a positive note on Tuesday, the rise could not be sustained for long. As trading progressed, investors began to move away from riskier assets. Weak signals from global markets also affected the sentiment in the domestic market.
With crude oil prices rising above $108 per barrel, pressure on major importing countries like India has increased. Expensive oil can affect a country’s import bill, inflation and costs for companies. This also has a direct impact on investors’ sentiments.
Similarly, a rise in bond yields and uncertainty over US monetary policy put pressure on equity markets. Geopolitical risks related to Iran-US tensions have also increased market caution.
Rupee also fell
With the stock market remaining weak, the Indian Rupee also remained under pressure. The rupee fell nearly 0.4 per cent to close at Rs 95.96 against the US dollar. According to reports, this is the biggest one-day fall of the rupee in almost two months. A weak rupee and higher crude oil prices could put further pressure on the Indian economy. There is concern that due to costlier imports, companies’ costs will be affected and inflation will be affected.
Sale to Adani Enterprises and Shriram Finance
Investors also increased selling in major stocks. Shares of Adani Enterprises and Shriram Finance fell about four percent each. Many financial and industrial stocks remained under pressure as risk aversion increased in the market.
In terms of sectoral performance, the biggest weakness was seen in Nifty indices related to cement, realty, financial services and metals. Banking, financial, consumer, healthcare and industrial shares also remained under pressure.
However, not all sectors are performing poorly. FMCG and IT sectors performed relatively well amid the broader market decline. Buying was seen in IT stocks, giving the market some support from these sectors.